HB3335 100TH GENERAL ASSEMBLY

LRB100 08104 HLH 18197 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3335

Introduced , by Rep. Jaime M. Andrade, Jr.

SYNOPSIS AS INTRODUCED:

New Act

Creates the Business Compensation Equity Fee Act. Provides that, beginning on January 1, 2018, an annual fee is imposed on each publicly traded company doing business in the State if the company reports a pay ratio between its chief executive officer's compensation and its employees' median pay of at least 100:1 on a disclosure filed with the United States Securities and Exchange Commission during the taxable year. Provides that, if the company reports a pay ratio of at least 100:1 but less than 250:1, then the amount of the fee shall be $1,500 annually, and if the company reports a pay ratio of 250:1 or greater, then the fee shall be $2,500 annually. Contains provisions concerning the administration of the Act. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Business Compensation Equity Fee Act.

Section 5. Definitions. As used in this Act, "Department" means the Department of Revenue.

Section 10. Fee imposed. Notwithstanding any other provision of law, beginning on January 1, 2018, an annual fee is imposed on each publicly traded company doing business in the State if the company reports a pay ratio between its chief executive officer's compensation and its employees' median pay of at least 100:1 on a disclosure filed with the United States Securities and Exchange Commission during the taxable year. If the company reports a pay ratio of at least 100:1 but less than 250:1, then the amount of the fee shall be $1,500 annually. If the company reports a pay ratio of 250:1 or greater, then the amount of the fee shall be $2,500 annually. The proceeds from the fees collected under this Act shall be deposited into the General Revenue Fund.

Section 15. Fee collected by the Department; returns. The fee imposed under this Act shall be collected by the Department of Revenue. Beginning in 2019, on or before April 15th of each year, each company that is liable for the fee imposed under this Act for the previous calendar year shall make a return and payment of the to the Department on a form prescribed and furnished by the Department. The return shall be signed by an authorized agent of the company under penalties of perjury and shall contain the following information:

(1) the business name;

(2) the address of the company's principal place of business;

(3) the pay ratio reported on the disclosure filed with the United States Securities and Exchange Commission for the previous calendar year; and

(4) any other information the Department may reasonably require.

Section 20. Books and records. Every company that is subject to the fee imposed under this Act shall keep books, records, papers, and other documents that are adequate to reflect the information that the company required by this Act to report to the Department. All books and records and other papers and documents required by this Act to be kept shall be kept in the English language and shall, at all times during business hours of the day, be subject to inspection by the Department or its duly authorized agents and employees. Books and records reflecting gross charges received during any period with respect to which the Department is authorized to establish liability as provided by this Act shall be preserved until the expiration of such period unless the Department, in writing, authorizes their destruction or disposal at an earlier date.

The Department may, upon written authorization of the Director, destroy any returns or any records, papers, or memoranda pertaining to such returns upon the expiration of any period covered by such returns with respect to which the Department is authorized to establish liability.

Section 25. Confidential information. All information received by the Department from returns filed under this Act, or from any investigations conducted under this Act, shall be confidential, except for official purposes, and any person who divulges any such information in any manner, except in accordance with a proper judicial order or as otherwise provided by law, shall be guilty of a Class B misdemeanor.

Section 30. Failure to make a return. Any company that is subject to the fee imposed under this Act who fails to make a return, or who makes a fraudulent return, or who willfully violates any other provision of this Act or any rule or regulation of the Department for the administration and enforcement of this Act, is guilty of a business offense and, upon conviction thereof, shall be fined not less than $1,000 nor more than $7,500.

Section 35. Applicability of Retailers' Occupation Tax Act and Uniform Penalty and Interest Act. All of the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, and 6c of the Retailers' Occupation Tax Act that are not inconsistent with this Act, and all provisions of the Uniform Penalty and Interest Act shall apply, as far as practicable, to the subject matter of this Act to the same extent as if such provisions were included herein. References in the incorporated Sections of the Retailers' Occupation Tax Act to retailers, to sellers, or to persons engaged in the business of selling tangible personal property mean persons subject to the fee under this Act. References to "taxes" in these incorporated Sections shall be construed to apply to the administration, payment, and remittance of all fees under this Act.

Section 40. Rulemaking. The Department shall adopt rules to implement and enforce the provisions of this Act.

Section 45. Review under Administrative Review Law. The provisions of the Administrative Review Law, and the rules adopted pursuant thereto, shall apply to and govern all proceedings for the judicial review of final administrative decisions of the Department under this Act. The term "administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure.

Section 99. Effective date. This Act takes effect upon becoming law.